Free Essay

Eharmony Case Study

In: Business and Management

Submitted By thecooldude
Words 1084
Pages 5
eHarmony Case StudyCentral Issue In the new world of making a name for yourself, one of the most important characteristics of human culture has begun to be lost. Love, relationships, marriage, etc. have all begun to be swallowed by the notion that in order to be successful in this world, your full attention, time, and money must be put into your career. Before the 20th century, life was simple and universal. Men “brought home the bacon” while women stayed at home washing dishes, cleaning the house, raising children, and cooking meals. Most married a stayed married. Divorce was highly frowned upon and therefore never happened.
However in the turn of the century, the age of technology and equal rights activists have brought a large change in the way our society is run today. Nearly half of all marriages now end in divorce and very few last more than four years. Not all of this is due to the selfishness and desire to stray from monogamy as most would think. Much of it has to do with the fact that people are so consumed with being all they can be and not putting in the time required to have that special connection with another human. eHarmony was created to provide a way for members of society to easily meet potential significant others and “date” over the internet while not sacrificing time in their workplace. The initial response of the public was wary. People felt embarrassed that they had to use technology to find that special someone rather than go out and do it on their own. However, soon the site began to catch on. eHarmony’s marketing technique focused on finding marriage rather than relationships and advertised other users who had great success with the site.
The success stories proved that eHarmony was the top site for finding long-term, committed relationships and marriages. Other sites, such as Match and Yahoo Personal, established themselves as successful dating sites however both lacked the number of successful marriages. To compete with eHarmony, Match introduced Chemistry, which mimicked eHarmony and was focused on producing marriages. Also in response to the growth of eHarmony, Yahoo Personal introduced a Premier option which also was focused on being more personal in the hope to produce more marriages.
Now the central problem for eHarmony has begun. eHarmony established itself as the leading matchmaking company but with competitors threatening to take market share, the company needed to find a way to preserve its reputation and remain the top matchmaking website for long term relationships.

Industry Environment
Beginning with Internal Rivalry, eHarmony faced a lot of competition within the industry. The most notable competition rested in pricing. There were hundreds of dating sites on the web pertaining to many different types of people. Some were broad and inviting for everyone, others specific to only a certain demographic whether it be race, religion, and/or even marital status. Along with these dating sites, were social networking sites but these proved to not generate much competition.
Some sites had membership fees while others were free. The free sites were generally not as well run and were not successful in creating long standing relationships. However the fact that they were free forced membership sites such as Match and eHarmony to bring down the price of their subscription fees.
With hundreds of matchmaking sites on the web, one would think that it would be an easy industry to enter. However, each year approximately 850 different sites attempted to join the industry and quickly failed or failed to ever gain a profit. eHarmony, Match, and Yahoo Personal had made names for themselves and it was going to be very difficult to gain market share without a lot of capital, advertising, and marketing.
Going along with new entrants, there were also very few substitutes in the industry. eHarmony established itself as the leading long-term Matchmaker and only Yahoo Personal and Match had the resources to compete.
Within eHarmony, supplier power was relatively low. The company grew to only 230 employees and half of which worked in customer service. The studies and surveys done by the company were simple and only involved researching couples. Therefore supplier costs were low and substitutes were readily available.
On the flip side, Buyer power became very high for eHarmony. eHarmony offered a service to ameliorate dating and have a better chance at finding that “special someone”. Consumers saw confidence in that by joining eHarmony they would quickly and easily find someone they could marry.

Strategy in the Environment eHarmony’s strategy worked out very well for its targeted customers. The matchmaking industry is very difficult to cover because there are so many different cliques within it. How do you create a site that satisfies the wants and needs of every individual looking for love? You can’t. Sexuality, race, religion, personality, monogamy, long term, short term, family, age, and appearance are just a fraction of the characteristics needed to be considered for an online dating site. eHarmony focused its strategy on what it felt would be the largest group of buyers without taking on every single characteristic that would go into a relationship. Heterosexuals looking for a long-term relationship leading to marriage are the buyers eHarmony is looking for. The personality profile and guided communication were the backbone of eHarmony and were relied on most to matching singles together. eHarmony felt that these tests and strategy would only apply to this demographic so many applicants to the site were denied for various reasons such as homosexuality, being married, and having more than three divorces.
Many felt that eHarmony was discriminating against these certain people however with all the research eHarmony had done, the same amount of research would need to be completed for all other demographics and could potentially harm the idea that eHarmony was a site to find marriage not a site to find an affair. However, new competitors, like Chemistry, used this to their advantage by advertising eHarmony’s rejections and saying that they were 100% accepting. eHarmony had no response to this but instead should continue to defend its position as the leading matchmaking company for long-term relationships. As long as it stays on top, it can retain its customer loyalty and therefore prevent Chemistry from gaining much market share. eHarmony will also likely expand into new countries to drive costumer growth and if it does so quickly it can gain popularity before its competitors who will likely do the same thing.

Similar Documents

Premium Essay

Managing Information Technology (7th Edition)

...CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5 Data Governance at InsuraCorp CASE STUDY I-6 H.H. Gregg’s Appliances, Inc.: Deciding on a New Information Technology Platform CASE STUDY I-7 Midsouth Chamber of Commerce (B): Cleaning Up an Information Systems Debacle CASE STUDY II-1 Vendor-Managed Inventory at NIBCO CASE STUDY II-2 Real-Time Business Intelligence at Continental Airlines CASE STUDY II-3 Norfolk Southern Railway: The Business Intelligence Journey CASE STUDY II-4 Mining Data to Increase State Tax Revenues in California CASE STUDY II-5 The Cliptomania™ Web Store: An E-Tailing Start-up Survival Story CASE STUDY II-6 Rock Island Chocolate Company, Inc.: Building a Social Networking Strategy CASE STUDY III-1 Managing a Systems Development Project at Consumer and Industrial Products, Inc. CASE STUDY III-2 A Make-or-Buy Decision at Baxter Manufacturing Company CASE STUDY III-3 ERP Purchase Decision at Benton Manufacturing Company, Inc. CASE STUDY......

Words: 239887 - Pages: 960

Free Essay

E-Harmony

...------------------------------------------------- eHarmony Case Analysis ------------------------------------------------- Summary While meeting people online to find a viable partner is more popular now than ever, online matchmaking industry initially faced challenges stemming from the stigma attached to it. The stigma subsided with time as more successful relationships evolved from online dating. Currently, people frustrated with traditional dating process which takes time and patience, prefer to meet people online for several reasons. Primarily, the convenience and accessibility is a huge benefit. There are over 20 million singles online and eHarmony states that one in five marriages started from an online relationship. Using online service not only allows you to meet other singles outside of your geographical area but also your social circle that you share common interests with. Online dating allows singles to search for a mate twenty four hours a day, seven days a week which works perfectly for a busy professional. Secondly, online sites like eHarmony provide matchmaking tools that can suggest single who are compatible with your values and beliefs, these tools make finding a potential mate easier than if you were randomly trying to meet someone in the real world. Lastly, it allows the singles to build a rapport before dating someone thus reducing the awkwardness of a first date. All of these factors play a role in eHarmony business strategy to differentiate the......

Words: 1632 - Pages: 7

Free Essay

Eharmony

...Case study: eHarmony Concepts of a case study: General to specifics. The economic, strategic and business logic of the industry. What are the choice, pros, cons, trade off. Intro eHarmony: online dating site for marriage-minded individuals. It combines extensive relationship questionnaire, patented matching system and guided communication. Information good of eHarmony: individual match. Match: eHarmony biggest competitor. I. Overall view of the industry | Size | Information flow | interaction | activities (work, random encounters) | 3 | 1 | 3 | brokers (family, friends) | 2 | 2 | 1 | market (parties, bar, club) | 1 | 3 | 2 | Interaction: how easy it is to get a relationship out of random encounters, friends etc. Information flow: information you give about yourself and information you learn from the other. From this table we can deduce that there is no perfect and best channel. Every channel has a significant disadvantange. Hence there is a potential of overcoming these difficulties through online dating. Companies have to add value and capture as much of this additional value as possible. II. How much of that value can a company get? For this we need to do an industrial analysis. How structurally attractive the industry is. Suppliers and buyers are the same group of people. They are the customer supplying information/profiles. They have a very strong power because they can go to another firm. But the limit......

Words: 762 - Pages: 4

Premium Essay

Eharmony

...eHarmony Business Case – Suraj Vadhul + Mauricio Jaramillo Executive Summary eHarmony, founded by Neil Warren and his son-in-law Greg Forgatch in 1998, is one of the leading online dating sites that helps singles in their search for long-term and serious relationships. Today, eHarmony has13.8% of the U.S. dating service market with over 33 million registered users. In the year 2003, eHarmony joined the elite group of companies in the online dating sector achieving a cumulative revenue of 1 billion. eHarmony has its operations in the U.S, Australia, Canada, U.K and Brazil. It has a widespread user base from over 150 countries. Neil Warren, who is the permanent CEO and founder of this company, started this as a match making site which implied its importance on compatibility rather than matching people on their hobbies or interests. eHarmony claims to use a complex scientific algorithm which gets the detailed user input and matches based on the developed algorithm. The results, according to the company, are staggering, as they claim that more than 600,000 people found their love on eHarmony. External Analysis Strengths eHarmony claims to have one of the strongest match making scientific algorithm which has appealed to millions of users and has steered them to stick with eHarmony, to find their perfect partner. Since eHarmony has always been highly receptive in the U.S, they have the selective user policy where not all the users who register get to access the site. A......

Words: 1248 - Pages: 5

Premium Essay

Ehamony

...9-709-424 JULY 1, 2008 MIKOŁAJ JAN PISKORSKI HANNA HAŁABURDA TROY SMITH eHarmony Greg Waldorf, the CEO of eHarmony, was in his car driving down the Interstate 10 Freeway after a day-long meeting with eHarmony’s senior leadership team. The sole purpose of this October 2007 meeting was to decide how the company should address recent competitor actions. After many deliberations, Waldorf’s executive team was able to identify four strategic options. Now, Waldorf and Greg Steiner, the President and COO, who was sitting next to him, were debating which option the company should pursue. As the two whizzed down the car pool lane, passing cars stuck in traffic, they reflected on eHarmony’s success. This online personals site targeted marriage-minded individuals and offered a unique product which combined an extensive relationship questionnaire, a patented matching system and a guided communication system. Despite charging a premium for its services, eHarmony had experienced phenomenal membership growth while its competitors stalled. As a consequence, it was able to increase its paying membership base to slightly less than a half of its largest competitor, even though it entered the market six years after they did. The success of eHarmony did not go unnoticed. From the beginning, competitors had been copying some of the company’s product features and closing the price gap. More recently, Match, eHarmony’s biggest competitor, had increased its advertising......

Words: 13790 - Pages: 56

Free Essay

Eharmony

...Integrative Case Analysis – Competitive Strategy eHarmony Industry Structure and Value Creation/Capture From times immemorial, with the possible exception of Adam and Eve (whose marriage was probably made in heaven anyway), finding a life partner on Earth has been a difficult task. Wars have been waged, monuments erected and kingdoms won and lost, in partner-acquisition endeavors. People have used numerous techniques, institutions, practices and systems over time to try to perfect the art of finding a partner that they could be happy with. Yet no system is universally accepted as a formula for success. The Internet in the mid-to-late 1990’s offered the promise of making the partner search process more efficient, quicker (for some), less onerous, and less emotionally draining than other means. This led to the creation of a new Industry – the Online Personals Industry – which I would define as “a collection of online services built specifically to cater to the needs of those looking online for a relationship partner, whether for marriage or long-or-short-term companionship”. By leveraging the power of faster communication, access to a large number of candidates and intelligent learning systems to suggest possible matches, online personals sites had an opportunity to carve out a non-trivial share of the matchmaking or partner-finding “market”. Technology had the additional benefit of bringing together people from distant geographies (I have a Chinese-American friend who......

Words: 2233 - Pages: 9

Premium Essay

Bp Global Marketing Strategy

...Image creation-BP is in the mature stage of its life cycle, has been involved in multiple mishaps over the years. They have lost focus of their duty to the environment, the public, and its shareholders. 1) SWOT analysis Strengths-they have alot of money that can be reinvested in enhancing/repairing their image and focusing on the environment, their connections (with the British government and Navy), alternative energy (wind, solar, biofuels), infrastructure, carbon footprint toolkit, they were the first energy company to acknowledge global warming/environmental awareness Weaknesses-image, oil spills, poor ethics (price gouging,wire/mail fraud, etc.) Opportunities-technological opportunities (alternative energies, improved drilling capabilities, jumping onto the environmentally sustainable movement-and is also a threat to their original business model) Threats-politics (policies/regulations), economics (supply and demand fluctuation, improved commodities markets), competition, natural disasters 2) Problem Analysis (this should be clear and to the point-a few sentences is all that is necessary): Their image is tarnished, so they are concentrating on rebuilding this. They started this process by changing their name from British Petroleum to simply BP (Beyond Petroleum-suggesting that they will focus their efforts on multiple energy sources). Why is their image tarnished? What led to this occurring? What measures have they taken to address this issue? 3)...

Words: 1521 - Pages: 7

Premium Essay

Impact of Technology on Social Interaction

...friends or family. According to the Telus and Technology survey done in August 2009, shows information and communication technologies are not replacing face-to-face contact but adding or enhancing it. It is giving people the ability to go their separate ways and still stay connected. Families are adding more activities to their daily schedules that text and cell phones are the main line of communication. Another study done by Pew Internet and American life Project shows that 64 percent of adults feel that new technologies has not increased or decreased the how close the family is. Dating has also had an impact of how we interact with people. Before technology, a person would have to gather the courage to go up to someone and say “Hello”, and now with just a few strokes on the keyboard you can accomplish the same thing. Social media networks such as Facebook and dating websites like eHarmony are perfect examples on how you enter a few things about yourself and just wait for someone to come along. Sometimes you get a perfect match and sometimes you don’t. In some cases who someone says they are isn’t always who they really are. Technology effects how we communicate...

Words: 619 - Pages: 3

Premium Essay

Online Dating Industry

...I. Dating Industry history The dating industry formed in the 1600s when the first services to help singles found spouses arose. At the time, being unmarried past the age of 21 was shameful causing some to turn towards matrimonial agencies to help them find a mate. The services utilized print ads typically on behalf of men who paid the agency to recruit them a wife. With the invention of the modern newspaper close to 1700 the print ad medium for finding a spouse began to gain popularity. Companies profited from posting a column in exchange for a fee. Continuing into the 1900s, print advertisements continued to be the dominant medium for the dating industry, but starting around the middle of the 20th century came the concept of computer assisted matchmaking. In the mid-1960s, Lewis Altfest and Robert Ross created Project TACT (Technical Automated Compatibility Testing). Participants paid $5 and answered roughly 100 multiple-choice questions about themselves. After submitting responses, cards printed out with names and phone numbers were provided. The concept of using formulas to match singles based on their like, dislikes and characteristics was born. The computer assisted matching concept however, would not catch on for several more decades. Other new concepts also arose in the dating industry. Shows such as The Dating Game brought the idea of matching strangers with similarities to the forefront of entertainment, with contestants asking questions of three potential......

Words: 4560 - Pages: 19

Premium Essay

Course

...1 SCHULICH SCHOOL OF BUSINESS YORK UNIVERSITY SGMT 6000 3.0 STRATEGIC MANAGEMENT Wednesday 2:30-5:30 pm (A) - Room N108 Tuesday 08:30-11:30 pm (B) - Room W136 Fall Term, 2011 Professor: Moshe Farjoun Email: mfarjoun@schulich.yorku.ca Room: N311 SSB Office Hours: By appointment Secretary: JoAnne Stein Office: N305B SSB Telephone: 416-736-5087 Brief Description This course examines business and corporate strategy. The focus is on strategic management, the process of choosing and defining purposes and objectives, formulating and implementing a viable strategy and monitoring strategic performance. It deals with the organization in its totality and demonstrates how and why the various functions of business are interdependent and need to be coordinated if the organization is to perform effectively. The course elaborates on the applicability of the strategic management discipline to a variety of sizes and types of organizations. Prerequisites Students are required to complete all 5000-series Required Foundations of Management Core Courses before enrolling in this course. Extended Description and Objectives One of the classic definitions of strategy is as follows: “A strategy is the pattern or plan that integrates an organization’s major goals, policies and action sequences into a cohesive whole. Well-formulated strategies help marshal and allocate an organization’s resources into a unique and viable posture based upon its relative internal competencies and shortcomings,......

Words: 3246 - Pages: 13

Premium Essay

Gooh

...XXX10.1177/1529100612436522Finkel et al.Online Dating 2012 Research Article Online Dating: A Critical Analysis From the Perspective of Psychological Science Psychological Science in the Public Interest 13(1) 3–66 © The Author(s) 2012 Reprints and permission: sagepub.com/journalsPermissions.nav DOI: 10.1177/1529100612436522 http://pspi.sagepub.com Eli J. Finkel1, Paul W. Eastwick2, Benjamin R. Karney3, Harry T. Reis4, and Susan Sprecher5 1 Northwestern University; 2Texas A&M University; 3University of California, Los Angeles; University of Rochester; and 5Illinois State University 4 Summary Online dating sites frequently claim that they have fundamentally altered the dating landscape for the better. This article employs psychological science to examine (a) whether online dating is fundamentally different from conventional offline dating and (b) whether online dating promotes better romantic outcomes than conventional offline dating. The answer to the first question (uniqueness) is yes, and the answer to the second question (superiority) is yes and no. To understand how online dating fundamentally differs from conventional offline dating and the circumstances under which online dating promotes better romantic outcomes than conventional offline dating, we consider the three major services online dating sites offer: access, communication, and matching. Access refers to users’ exposure to and opportunity to evaluate potential......

Words: 59050 - Pages: 237

Free Essay

Onlinde Dating

...Felix Chevasco Professor: LoRe English 101 Date: 12/10/12 Traditional Courtship vs. Online Dating The Difference between Traditional courtship and Internet Dating When I was listening to my favorite talk show, Focus on the Family, they talked about the advantages of Internet dating. This allows the listeners, who got married prior the new millennium, to ponder the benefits of online dating, which were absent during their time of courtship. In traditional dating initial eye contact and study of the personality of the person is an important element in determining chemistry. However, what makes traditional dating best is the boundary and purpose that courtship provides. In contrast, online dating is more casual. In traditional dating, couples were introduced to each other by a friend and relative, or they met in a social activity such as their local church, school or family reunion. Nowadays, it is not necessary to meet people face to face in order to start a relationship. The internet changes our lives forever with chat rooms, social networks or online websites. More and more people are drawn to using the internet as a form of dating, with a high cost, and are unaware of the danger that you can face meeting with a stranger. Traditional dating is much better that online dating because traditional dating gives the couple the complement of courtship, commitment and purpose. Traditional dating is not only based in a feeling or a rush gut reaction. It gives the couple the......

Words: 2149 - Pages: 9

Free Essay

This Theory Means That Leaders Are Made Not Born and in Health Care Many Employees Can Become Leaders Because of the Passion They Have for the Job and the Experience They Learn over Years. in Health Care Experience Is

...Running Head: DISHARMONY AND MISMATCH Disharmony and Mismatch: The Truth about Online Dating Isioma K. Ehiobu CAS 4703-993 April 27, 2011 Disharmony and Mismatch: The Truth about Online Dating Five years ago American journalist, Thomas Friedman, wrote a book entitled The World Is Flat: A Brief History of the Twenty-first Century. His main reason for writing this book was to point out that the world in which we live in was being flattened by technology. What he meant by the term “flatten” was that the things that couldn’t be done decades ago due to the lack of technology are now being conducted today at a fast rate because of how advanced the technology is today. Take for instance, the Internet, decades ago not that much could be done on it but now it allows people to communicate with one another across the globe. He goes into detail as he talks about the workflow software, which was one of the ten forces that flatten the world as it contributed to the improvement of the Internet (Friedman, 2006, p. 78). Now it allows people to interact with one another through various means like social network, emails, and now with the upcoming of Internet dating. Internet dating, once considered taboo, is now an effective way to meet others like ourselves that we may have otherwise not met in a public setting. Today, this type of dating appears to be replacing our traditional ways when looking for a soulmate, especially for those who have had an unsuccessful......

Words: 3637 - Pages: 15

Premium Essay

Negative Effects of Social Networking

...Negative Effects of Social Networking Shelly Miner Western Governors University WGU Student #000246417 Negative Effects of Social Networking Social Networking or Social Media Websites (Social Networking) allow users to quickly share information and create online connections with other users. Despite the benefits, social networking can negatively effect us socially and can lead to undeveloped social skills and social alienation. Our intimate relationships can be negatively effected because social networking users can quickly find and communicate discreetly with others which can potentially lead to infidelity. Information posted on social networking sites can also have negative effects on current or potential employment opportunities. Social networks are intended to share information with everyone; this lack of protection can increase security risks such as identity theft, cyberbullying and computer viruses. Although each of these social networking sites offers attractive incentives and overwhelming popularity, research indicates that social networking can actually be detrimental because it has negative effects on social skills, relationships, employment, and security. Since their creation, social networking are rapidly changing the way we communicate, discover and share information and has become a crucial part of not only our personal lives but our professional lives. Social networking can be seen almost everywhere we go from retail......

Words: 2864 - Pages: 12

Premium Essay

Ethical Delminas

...Stephanie Miller English 1020 11/26/13 Research essay Your life is busy and you try to keep up with your family and friends. What better way than social media? Most people use things like Facebook, twitter, Myspace, emails, and Skype. When your single and looking to date or a way to meet new people you also use social media, such as eHarmony, match or other dating sites. Social media has made it very easy, and plays a big role in our lives every day, but does it affect your personal relationships? How did the world communicate before cell phones, internet, and e-mail? We used a land line to call people if we wanted to talk. We used the postal services and sent thing though the mail. If something was really important we faxed documents. If you wanted to meet new people you went out and socialized. Many decades of people communicated and had relationships without social media. Before social media if you wanted a job you went out and went job hunting. Now if you want a job you just pick up the computer and look at sites online. You fill out applications on line and wait for the phone calls. The new age of social media has made socializing very easy, but do you really know who is on the other end of the message you just sent? Social media is a new way to get information from people and use it for other things. You have been talking to this guy for six months, and you believe that you are in love. Now this guy is asking you to send him money, so you send him some money......

Words: 2694 - Pages: 11